One of the first few token sales that went straight to exchanges was done on the Binance Launchpad- GIFTO sold out successfully in a matter of seconds really.
Since then, many exchanges have done similar token sales, coining (excuse the punt) a new term- Initial Exchange Offering or IEO. What this means is that instead of buying on the token issuer website, customers can buy directly on these exchanges, and thereby having a guaranteed listing of the token for trade after the initial sales.
This brings to mind why token issuers are doing this, and what benefits can the public possibly get from this move? Consequently, is this the future of all token sales?
Access to private sales
Many who have lost money in ICOs have one main gripe- the significant discounts given to private placement that they do not have access to, which leads to a drastic reduction in prices on trading day below public sale prices.
Spiking, a leading financial signals app, has taken this one step further by allowing customers access to its private placement directly on an exchange. This leads to a more equal opportunity for customers to buy tokens at discounts.
Weeding out Scams
Exchanges have done their extensive due diligence in the token offerings and the companies behind them. By staking their reputation and technology on these offerings, customers can have a great peace of mind that such token sales are conducted with the utmost security and integrity.
Of note, exchanges only take on projects which can deliver and ensure value creation which can sustain the demand for their tokens in the long term. With the above example of Spiking, QUOINE exchange has shown great confidence in listing even the private-sale component of Spiking on the exchange.
By having initial token sales on exchanges, the issuer also fulfils its obligation to the initial customers that the tokens are liquid and that liquidity in the tokens are part of the product or infrastructure.
The Future of All Token Sales
By cutting out the main issues plaguing ICOs - Scams, failed listings, security infringements and hacks, it is inevitable that the future of all token sales will be done on exchanges.
With leading exchanges now taking the lead on this issue and on-boarding top ICOs, customers can look forward to a more stable cryptocurrency industry and regulators can rest a bit easier in the progress of this disruptive era.